TNT posts Q3 earnings, keeps 2007 forecast

TNT Express said group revenues grew 10.5% to reach US$3.79 billion in the third quarter of the year.

Operating income registered flat growth of US$371 million, despite incremental start-up investments of US$17 million in high growth areas.

The company's Express unit experienced strong revenue growths of 14%, while operating income from the unit increased from US$184 million in the same quarter last year to US$192 million in 2007.

TNT confirmed its 2007 outlook of 15% revenue growth for its express division and an EBIT margin between 9-10%.

"The development of our results is satisfactory, certainly compared to the very strong Q3 of last year," said CEO Peter Bakker. "Both Express and Mail revenues showed good organic growth and we continued to invest in emerging business in Express and Mail."

TNT forecasts its mail division to reach a revenue growth in the mid-single-digit percentage level and an operating margin of around 17.5% excluding the impact of new cost savings initiatives.